Decision details

Councillor Richard Gold, Cabinet Member for Finance and Communities, presented the report which sought endorsement and approval for the procurement of the relevant Insurance Programme contracts due to commence on 1 April 2024 via an insurance Broker.

Decision:

Cabinet:

1.    Approved the undertaking of the necessary procurement, via an insurance broker, of the relevant Insurance Programme contracts;

2.    Delegated authority to the Executive Director of Finance (S151Officer), in consultation with the Cabinet Member for Finance and Communities, to undertake a tender process to ensure that appropriate Insurance arrangements are in place for the activities of the Council; and

3.    Requested a report back to Cabinet on the results of the procurement exercise seeking authorisation of the award of contracts to the successful bidders and delegation of authority to the Executive Director of Finance and the Council’s Monitoring Officer, after consultation with the Cabinet Member for Finance and Communities, to take the necessary actions required to implement that decision.

Reasons for the decision:

It is recommended the Council proceeds with a tender exercise to procure a new insurance programme. There is no option for a further extension of the existing arrangement. Proceeding without insurance cover is not recommended as the Council would risk significant claims spend – particularly if a total property loss was to be suffered. Completing a tender exercise will allow the Council to explore all available market options, which is considered advantageous whilst the insurance market remains unsettled. The market has hardened since Covid-19 due to global uncertainty and limited investment opportunities, making re-insurance more expensive.

Other options considered and rejected:

When the policies expire on 31st March 2024, the Council has only one alternative option – to do nothing and self-insure without additional insurance cover.